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Research: The journey from no credit history to establishing credit history -

Having money to spend on everything is not an easy task. Many people are often scared to carry around cash in bulk as well. The ideal solution therefore is to opt for credit cards. However in order to get a credit card you need to have credit history. With no credit history, it becomes difficult to convince bankers to give you credit. It is a catch 22 situation, but there are ways to make it easier. If this were the case, then it would be virtually impossible for just about everyone to get a credit card. So if you are struggling to get your first ever card, don’t worry there are loopholes to every rule.

When you want a credit card and have no credit history, you need to bear in mind that the important fact is to prove that you are reliable to bankers. Therefore, having the right papers on hand is important. Firstly, you need to have proof of reliable and secure income. Once you can prove to the bank that you have a regular source of income, then getting a credit card becomes easier. It is wiser therefore to look for credit cards from the bank where you have your salaried account.

There are many ways to establish some kind of credit history for the banks to rely on. You can start small by opting for store credit cards. These will be easy to get and the amounts are easy to pay off being quite small. There is no shortcut or easy way to establish credit. Like with beginning a job, you need to start small and then work your way up the ladder. Once you have consistent records of paying the amount every month on the store credit card, you can look at applying for a credit card. This will serve to alleviate your no credit history.

Another way to deal with no credit history is by going for prepaid or secured credit cards. All you need to ensure is that the prepaid or secured card you opt for will be mailing out statements every month to the credit bureaus. This will help you to establish a credible financial statement for the banks to rely on. With both prepaid and secured credit cards, you can definitely build your credit history easily enough. Since the card is already paid for and your spending power depends on how much you can afford, there is no chance to make mistakes here.

When you have no credit history and are looking for ways to improve, then you must start with the right resources. It is important to understand that everyone with credit cards began the same way. Right from the beginning; make sure you pay off whatever money you charge to the card every month. This will automatically ensure you end up with good credit scores. Spending responsibly and learning to use your money carefully will be the stepping stones to establishing a good credit score over time. Once you have good credit history, getting any kind of credit card will be easy.